The Lupus star-forming region has been surveyed for molecular clouds in ^12^CO with the NANTEN radio telescope, and a cloud mass of 1.7x10^4^M_{sun}_ has been revealed. We were able to detect 105 molecular clouds, most of which are relatively small and of low mass. The members of the Sco OB 2 association and the X-ray detected pre-main-sequence stars (PMSs) are distributed all around this region. The OB stars and the molecular clouds show exclusive distributions. Large fractions of the PMSs are located away from the molecular clouds, and are thus isolated. The origin of the isolated PMSs is discussed. About 40% of the PMSs have candidates of their parent clouds less massive than 20M_{sun}_ within 4pc, which suggests in-situ star formation in the small clouds and their rapid dissipation. The separations from the PMSs to the clouds are typically larger than those in the Chamaeleon region, probably because of coexisting OB stars. From the cloud structures and the distributions of the OB stars, PMSs, and H I expanding shell, it is suggested that the molecular clouds have been effectively dissipated by the OB stars and a shock wave, which may also have triggered star formation in Lupus and the {rho} Oph clouds.